The real estate market in Sydney has captured the attention of residential property investors, and for good reason.
Rent prices in Sydney have hit a record high, with the latest PropTrack Market Insight report finding that the median rental price in Sydney now sits at $560 per week. At the same time, national residential property prices slid 4.5% in January from their peak in early 2022. High rents and low prices means one thing for investors: high yield. This is why we anticipate that over the next six months, investors are likely to enter the market in big numbers, capitalising on the market conditions.
But securing an excellent investment before someone else does isn’t a simple task, it demands preparation and expertise. Here is how we’ve seen the best investors successfully snap up enviable investments in Sydney – and how you can, too.
Get pre-approval
It may sound obvious, but before investing in a residential property, you must have your finances organised. While getting pre-approval isn’t a compulsory part of making an offer, it helps to position you as a serious buyer. Pre-approval will also give you a clear idea of exactly how much you can afford to spend, allowing you to bid and negotiate with confidence. Furthermore, it can also smooth over the settlement process, leaving little to do before closing the deal.
Work out your investment criteria
Knowing what you are looking for in an investment property is crucial. Consider the location, property type, and features you want in your investment, as well as the yield you would like. By having a clear idea of what you are looking for, you will be able to quickly eliminate properties which don’t meet your needs or suit your current situation.
Set your budget
Setting your budget is essential when investing in residential property. You should have a clear idea of the ideal amount you can spend from the pre-approval process and then decide on the amount you are willing to spend. Note that these may be different figures. Knowing your budget and having a clearly defined upper limit will help to refine your search and allow you to bid within your means.
Sign up to alerts
At Prudential, we can help keep you updated on new residential property listings by signing you up to our alerts. The first thing our agents do when they have the contract of sale and are able to spread the word about a property is turn to their trusted portfolio of qualified buyers. Importantly, this happens before the ad even goes live, which means you could be one of the first to hear about and bid on the property. If you speak with one of our offices, our team can sign you up to alerts for new residential property listings that match your investment criteria.
Act fast
Finally, be prepared to act fast as good investments go quickly. Sometimes the window between when we get the contract of sale and the property goes “live” is just 12-24 hours. In this time, every hour is crucial, and with every one that passes, you run the risk of a property getting snapped up by another investor.
Taking advantage of Sydney’s current market takes time and preparation, but it’s well worthwhile. With excellent yield, we believe now is a great time to snap up a residential property investment. By following our tips above, you can take advantage of the opportunities available and best position yourself for finding a sound investment.
Statistics referred to in this article were obtained from publicly accessible and online data sources including realestate.com.au.
Prudential Real Estate Campbelltown | (02) 4628 0033 | campbelltown@prudential.com.au
Prudential Real Estate Liverpool | (02) 9822 5999 | liverpool@prudential.com.au
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | macquariefields@prudential.com.au
Prudential Real Estate Narellan | (02) 4624 4400 | narellan@prudential.com.au
